HMC Capital (ASX:HMC) announced a strategic partnership with global investment giant KKR.
Under the agreement, KKR-managed funds will inject up to $603 million into HMC’s Energy Transition Platform.
The substantial investment, funded via KKR’s global climate transition strategy, positions KKR as a key partner alongside HMC to accelerate the development of critical green infrastructure.
The funding structure includes $355 million in upfront capital, with an additional $248 million follow-on commitment to scale the platform's operations.
The funds are earmarked to progress HMC's 5.7GW development pipeline, which includes significant Battery Energy Storage Systems and wind projects aimed at bolstering grid reliability.
For HMC, the deal is a major balance sheet optimiser; the company expects its invested capital in the platform to reduce to approximately $200 million, while still targeting an equity IRR north of its 20% ROE target.
Proceeds from the transaction will be utilised to deleverage, repaying HMC’s existing mezzanine and corporate debt facilities.
Beyond the immediate financial injection, HMC will earn $5 million in annual corporate service fees and retains the flexibility to introduce further third-party capital in the future.
Managing Director David Di Pilla emphasized that KKR’s entry validates the quality of HMC’s platform, providing the firepower necessary to achieve Australia’s 2050 net-zero carbon goals.
The transaction is slated for completion in mid-2026, pending regulatory approvals.